Thursday, April 15, 2010

ATR vs. Volume in Forex Crosses




Recently I've noticed that ATR can be displayed as a histogram in TOS's (thinkorswim) platform. You can't do that in stockcharts.com/freestockcharts.com etc, so I compared ATR (1) to volume in currency futures and found out the strikings similarities!

Conservatively,
VOLUME = VOLATILITY in forex.

This would be greatly benefit trading in pips and not ticks since there is no volume in forex.

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